BGX Whitepaper
Multifunctional Processing Platform
ICO dates
Start date: 2018-04-24
End date: 2018-05-15
Registrated in: Switzerland
Platform: Ethereum
Type: ERC20
BGX Whitepaper
TABLE OF CONTENT
TABLE OF CONTENT
3
DISCLAIMER OF LIABILITY
4
ABSTRACT
5
1 INTRODUCTION
6
2 MARKET STATUS AND CURRENT TRENDS
8
2.1. The rise of digital economy and decentralization of markets
8
2.2. A new generation of fintech solutions and blockchain
10
2.3. Mobile games – generator of gaming market growth
12
2.4. Mobile App Distribution
14
2.5. AI and Fraud Prevention
18
3 THE BGX Platform
22
3.1. Pre-history
22
3.2. Market Opportunities
22
3.3. BGX Ecosystem
26
3.4. Distinctive Features of BGX
27
3.5. BGX Components
27
3.6. BGX Advantages
28
4 TECHNOLOGY
30
4.1. Decentralized Payments Processing
30
4.2. Platform Architecture
34
4.3. Artificial Intelligence
36
4.4. File Storage
38
4.5. Cyber Security & Data Protection
39
5. PLATFORM CURRENCY AND TOKEN SALE
41
5.1. Tokens and Token Allocation
41
5.2. Crowdsale Event and Fund Distribution
43
5.3. The Economy of The BGX Platform
45
5.4. Overdraft Feature
49
5.5. Loyalty Club Revenue Sharing
52
6. PRODUCT ROADMAP
53
7. TEAM
54
7.1. Mission
54
7.2. Team Overview
54
8. Lead Advisors
57
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DISCLAIMER OF LIABILITY
This document presents the BGX platform and its tokens (BGX and BGT) to poten-
tial holders in connection with the upcoming Token Generation Event. The information
set out below cannot be exhaustive; it is subject to change and does not imply any form
of contractual relationship. The only purpose of this document is to provide relevant and
reasonably-sufficient information to potential token holders so that they can determine
their interest in buying BGX tokens. BGT Coins are used only within gaming applications
and represent these applications, not the platform itself.
Nothing in the text below is to be considered investment advice or recommenda-
tion, nor is it an offer to purchase any securities in any jurisdiction. This document is not
composed in accordance with the laws or regulations of any particular jurisdiction and is
not subject to laws that are intended to protect investors. Please invest at your own risk.
The BGX identifier simultaneously represents the platform and the main system
token. Its use within the platform corresponds to the application-level token (Utility
To-ken). The BGX token is not a digital currency, a security or any other financial
instrument. The token was not registered under the United States Securities Act or
any securities laws of any other country.
The BGX identifier cannot be used for any purpose other than those specified in
this document, including, but not limited to, any investment, speculative or other finan-
cial objectives. BGX token is not intended for sale or use in any jurisdiction where the
sale or use of digital tokens may be prohibited.
The BGX Token does not give any other rights in any form, including but not limited
to any property, distribution (including but not limited to profit), redemption, liquidation,
property (including all forms of intellectual property) or other financial or legal rights,
other than those described in this document.
Some statements, estimates and financial information contained in this document
represent statements or information concerning the future. Such forward-looking
state-ments or information is related to known and unknown risks and uncertainties
that could cause actual events or results to differ materially from the estimates or
results implied or expressed in such forward-looking statements. This document may
be mod-ified without warning.
The last updated version of the document in the English language is the main official
source of information about the BGX token. The information contained herein may be
translated into other languages or used in a written or oral communication with existing
and potential customers, partners, etc. During such translation or communication,
part of the information contained in this document may be lost or distorted. The
accuracy of such alternative messages cannot be guaranteed. In the event of any
conflicts or inconsistencies between such translations and messages and the
current version in English, the provisions of the English version shall prevail.
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ABSTRACT
BGX is a multifunctional processing platform in the field of mobile games, pow-
ered by artificial intelligence. Possessing significant functionality and modern architec-
ture, BGX provides financial support and brings the power of the crypto economy into
the world of mobile games.
Game developers and app markets can easily enter the crypto-economy with BGX.
By using the internal token, they can monetize their games and access a large
market, while paying only 10% commissions on their revenue. The commission
structure is one third of what Play Market and App Store often charge. In exchange, the
developers and marketers can access a variety of game-related revenue channels that
these larger platforms lack and can use many financial capabilities formerly only
possible in the crypto-economy.
Players have access to a virtual wallet system that allows them to benefit from a
universal currency used across all games, to earn by viewing ads, to receive compen-
sation for playing, and to participate in tournaments.
The BGX token issue is limited to a one-time release of 1 BLN tokens on the
Ethereum platform in the ERC20 standard. The sale of BGX tokens will take place in the
period of Apr 24, 2018 - May 14, 2018 and offers a system of discounts and bonuses.
The BGX platform has several key advantages.
(1) It uses advanced self-learning artificial intelligence fuzzy network that elimi-
nates fraud.
(2) The off-chain hybrid approach to processing transactions enables the BGX
platform to process more than 4,000 transactions per second, at a speed and capacity
far superior to the Ethereum blockchain.
(3) The double-token system separates the interests of the investors and the us-
ers, so that the investors can benefit from significant rise in token price, while the econ-
omy remains stable through a stable coin.
(4) The revenue sharing club enables BGX token holders to share in the revenue of
the platform, while the tiered system incentivizes holding of the token, raising its price.
(5) BGX is an open-sourced, truly decentralized project. At the same time, it is a
technology — not a protocol.
BGX offers one of the most advanced technological infrastructures with
powerful processing capabilities, a set of financial and game features, all for one of the
most technologically-adaptive and profitable industries — mobile games. Join us
and "Be in BGX".
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1 INTRODUCTION
Technology significantly changes people’s perception of the surrounding world.
Since the XIX century, the industrial revolution has shrunk the world with the help of
steam engines and made trips to a neighboring city or country not just possible, but
quick. In the twentieth century, electrification brought light to every home and facilitated
access to knowledge for millions. Flying into space, the discovery of antibiotics,
the emergence of the Internet - all innovations start unexpectedly, and at first seem to
be pleasant additions to the existing world. After a short while people can no longer
live without them. These creations exist objectively and outside of us; humanity
simply unexpectedly discovers them in surprise, like lost islands in a vast ocean.
The digital revolution, beginning with the ubiquitous spread of the Internet and
cellular communications, encompasses the real world and continues beyond the
forms in which it originated. New economic models are emerging everywhere, changing
the relations between traditional participants: the most significant transformation is
unfolding right before our eyes. It is decentralization.
Decentralization leads to a more even distribution of costs and revenues, towards
a more transparent decision-making mechanism. The most important technology that
provides distributed mechanisms for storing information and making decisions is
the blockchain. This simple and effective mechanism allows placement of
confidential data in an open environment, solving cryptographic tasks to verify
anonymous transactions. More importantly than the functions of information storage
and management, the block creates social trust mechanisms that unite people outside
of borders, countries, nations and languages.
Like other basic paradigms formed in the process of the technological revolution,
blockchain creates winners and losers; those who adapt to the new environment and
those who are pushed to the periphery. Old idols and centers of gravity are unlikely to
rule the information world of tomorrow; the technological revolution is merciless in this
regard. We can be grateful for what we use today browsers, email, distributed games.
Let’s look forward, however, to when absolutely new platforms and exciting solutions
come to exist.
In this new reality, monetization models, content delivery methods, promotional
tools and much more will be subject to revision. Various industries are at different levels
of preparedness for a transition, but one of the most mobilized ones is the industry
of mobile games. Both children and adults play games: while waiting for in a lobby,
sitting on a bus or relaxing in the evening. Competitions take place in the mobile world
and a thousand new games appear every day. There are more than a billion users in this
segment, and they contribute the most to mobile application revenue. A significant part
of that revenue settles in the central application stores.
The ecosystem of mobile games needs to reduce the threshold of entry to the mar-
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ket for developers, to ease the formation of local and specialized application stores, to
lower commissions for players, and to introduce a transparent mechanism for the
distribution of income. Today, the fulfillment of these needs is impossible because of the
rules imposed by large companies.
Such a situation cannot remain unchanged in a decentralized economy.
Mobile games is the most powerful and fastest growing segment of the entertain-
ment industry. Millions of daily transactions related to in-game purchases, advertising,
participation in tournaments and promotion of mobile games need their own, specialized
infrastructure that takes into account the specifics of this market. BGX offers game de-
velopers, local and niche application stores, sponsors and players integrated ecosystem
support in which the distribution of profits is managed in a transparent,
decentralized way, and individual participants do not monopolize access to information.
The proposed solution is the synergy of efforts between three groups of developers
who have united in BGX and have been developing their own technology solutions
for several years. These include the developers of financial processing systems,
developers of research projects in the field of artificial intelligence, and mobile
content delivery systems developers. The result of this alliance is a decision to
publish all of the developed solutions in an open access space and to bring the
unified processing platform to the decentralized mobile games market.
The functionalities of BGX include: (1) a distribution system for gaming applications
on Android and iOS; (2) independent processing of fiat and crypto transaction, including
support for overdraft; (3) a virtual player payment wallet; (4) a subsystem for token
emission by developers; (5) support for common monetization models; and (6) a
power-ful engine of artificial intelligence that controls the ongoing transactions and
scoring of the players.
The BGX Token is the fuel of the system, fully integrating it into the crypto-econo-
my. It allows the members of the mobile game ecosystem to access the platform ser-
vices, to exchange various game tokens among themselves, and also to become a
member of a powerful gaming community. The use of the crypto-economy to solve
these tasks opens great prospects for business development and additional acquisition
advantages.
In practice, BGX transitions the mobile gaming industry from the “Internet of
Infor-mation” to the age of the “Internet of Value”.Be in BGX. Invest in yourself.
YOUR WORLD! YOUR GAMES! YOUR MONEY!
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> > 2.1
THE RISE OF DIGITAL
ECONOMY AND
DECENTRALIZATION
OF MARKETS
2 MARKET STATUS AND CURRENT TRENDS
The full potential of the proposed solution cannot be estimated without an under-
standing of the global shifts in the economy. According to the FROST & SUVILLIAN
report1, and the no less thorough research of EY2, there are several mega-trends
that form the agenda for today and tomorrow. The most important ones directly
influence the solutionthat is being developed:
• TECHNOLOGICAL DIVERGENCE (connecting all and everything, big data,
gaming, virtual currency);
• MOBILIZATION (the rise of e-commerce, micro-mobility, integrated mobility);
• NEW SOCIAL TRENDS (Y generation, the role of women She-Conomy, life
expectancy growth — Gray Aging, fight against obesity, geo-socialization);
• NEW REALITY OF TRADE (Virtual shops, OMNI-CHANNELS, new business
model of sales);
• URBANIZATION (urban population growth and suburbs, megacities,slum
growth).
The Generation Y / Millennials (born after 1980 and until 1995-2000) is not only
the most numerous generation3 but also the most active in terms of mobile games.
Together with Gen Z (Native Digital), they view digital life as a natural continuation of
real life, easily making purchases, switching from one account to another and spending
considerable time on smartphones.
Along with the expansion of the mobile applications market, consumers create a
new set of alternatives to traditional payment methods due to the prevalence of mobile
applications and mobile wallets, such as Apple Pay, Android Pay, PayPal, Visa
Checkout, WeChat Pay and Alipay. According to NewZoo4, the two most active groups in
relation to the innovations used are gamers and Millennials (i.e. consumers aged 18 to 35).
Not only do these consumers use mobile digital methods for payment on a
regular basis, but they also show a marked preference for this method compared with
traditional payment behavior.
For example, in North America, 57% of older Millennials (i.e. aged 26-35)
prefer to use mobile digital payment instead of more traditional methods such as
debit / credit and bank transfers. In Europe and the Asia-Pacific, these consumers
show similar behavior; in fact, adoption and preference for new payment technol-
ogies are higher for gamers and Millennials in the Asia-Pacific area than in the
rest of the world.
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1 Top 20 Global Mega Trends and Their Impact on Business, Cultures and Society. FROST & SUVILLIAN, 2016
2 The upside of disruption. Megatrends shaping 2016 and beyond. EY, 2016
3 MILLENNIALS. Coming of Age, Goldman Sachs
4 INSIGHTS INTO GAMERS & MILLENNIALS & THE FUTURE OF DIGITAL COMMERCE, NewZoo, 2017
8
Figure 1 >> >>
Gamers by age Group
Distribution of gamers
in the United States as of
April 2015, by age Group5
One of the most significant trends in recent years is the general decentralization
of the solutions being developed. Over the past few years, a platform economy6
has been formed, which includes such important models ast he following:
• Cloud solutions (Dropbox, AWS, Spotify);
• Sharing an economy where linear value chains give way to non-linear
models with brokers-platforms (Airbnb, Uber, etc.);
• Crowdsourcing investment collection models (Kickstarter, Indiegogo).
At the same time, this decentralized technology offered by the blockchain
solutions gradually took possession of the market. Blockchain brought the P2P in-
frastructure to payment applications, but more importantly, it opened a new paradigm
of value creation and distribution. Together with such new technologies as Artificial
Intelligence, Internet of Things, and Augmented Reality, among others, decentralized
solutions have changed the expectations of the consumer market.7
5 USA Gamers Distribution, Statista 2015
6 Platform Economy, Accenture, 2016
7 10 HOT CONSUMERS TRENDS 2017, ERICSSON CONSUMER LAB
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New expectations were born:
• Fast unlimited calculations in a convenient currency;
• Information collection in many ways, from different sources, in an easy
to assimilate format;
• Elimination of intermediaries that create an obstacle to decision-making;
• Transference of labor-intensive or technically complex solutions to the computer
environment (AI);
• Reduction time to enter the market through the use of public and
distributed computing;
• The shift of consumer goals from the final process of obtaining goods
to obtaining experience and transforming the life style.
> > 2.2
A NEW GENERATION
OF FINTECH SOLUTIONS
AND BLOCKCHAIN
Fintech is a rapidly developing area in which technological start-ups use
new technologies to solve the tasks of traditional banking and other financial or-
ganizations quicker and with less commissions. Following PayPal, other technical
solutions change the traditional mechanism of payment for goods, money trans-
fers, microcredit, insurance, etc. SuchinitiativesasUPI8, e-Wallets, E-Mandate-
sPeer-To-Peer (P2P) Lending, MDR (MerchantDiscountRate) payments change
the expectations users have about financial applications.
At present, fintech is exposed to the following increasing trends9:
• Explosion and diversification of cryptocurrencies. While there is
a huge number of new cryptocurrencies and their markets attract an
increasing number of participants, the problem of volatility pushes the
consumers to diversify the means of payment and the demand for
integration solutions;
• Widespread blockchain technology and it is application outside
of purely-payment operations: real estate, identification, gaming market;
• As fintech startups succeed, their competition with traditional
institutions becomes more intense, and they begin to adapt to the new
reality. The very number of start-ups is decreasing and
investments are shifting towards the ICO10;
• Regulation of the new economy intensifies, and several governments are
working on their own ICO regulatory frameworks and blockchain solutions.
An increasing number of participants enter the KYC procedure as mandatory.
8 Unified Payment Interface
9 Global Fintech Report 2017, PWC
10 State of Blockchain – Q3’17, Coindesk
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Figure 2 >> >>
Digital Assets Out
performed Traditional
Assets, Coindesk
2017 YTD Returns
Besides additional opportunities for the technology users, these
technologies present a reduction in the commission of financial institutions.
According to Goldman Sachs11, blockchain and related technologies may lead to the
restructuring of the economy of the entire traditional financial chain.
• The banking sector can achieve a 10% reduction in the number of personnel
only through the introduction of KYC12 blockchain procedures. That is about
$160 million per year;
• Blockchaincan reduce the amount of budget resources allocated to staff
training — a 30% reduction of $420 million;
• Due to the use of technological innovations there is a savingin processing,
with saving sofabout $ 2.5 billion. In addition, due to strict technological
regulations, the amount of penalties will be significantly reduced — an
estimate ranging from $0.5 to $2 billion.
The change in the nature of investment, provided by solutions based on block-
chain, has led to the ICO boom.
• The total investment in the blockchain solutions through the ICO by the end
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11 PROFILES IN INNOVATION BLOCKCHAIN. Putting Theory into Practice, Goldman Sachs, 2016
12 Know Your Customer, user verification procedure
11
Figure 3 >> >>
3ICO Funding Raised
$1.2bn in Q3’2017
Q3 2017 Blockchain
Funding
of 2017 exceeded the VC investment by 9 times ($ 1,246 M vs. $ 156 M13);
• ICO offers a more structured and transparent investment model than
VC with the distribution of collected funds through the mechanism of smart
contracts;
• The reduction in the entry threshold for collecting investments and the high
growth of output tokens attracted a large number of participants in the sale
of tokens. A number of such projects are waiting for failure; some of them
are created with fraudulent goals. At the same time, winning winners makes
these investments more attractive than traditional ones.
> > 2.3
MOBILE GAMES –
GENERATOR
OF GAMING MARKET
GROWTH
There are over 2 billion gamers in the world14, a significant part of them are
users of mobile games. Only in the USA there are more than 100 million mobile play-
ers (almost one third of the population of the country), and the entire mobile
games industry will reach $60B by 2020. This figure is commensurate with entire
national economies.
People spend a great deal of their time on games. They play at home, on the
train, while waiting for something; just to calm down or to have fun. Not only
children and teenagers play but also adults do too. In addition to the time spent,
there is a consumption of money.
13 State of Blockchain – Q3’17, Coindesk
14 GLOBAL GAMES MARKET REPORT, NewZoo, 2017
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Figure 4 >> >>
The Global
Games Market 2017
Per Region, NewZoo
Mobile games are not only the most popular category of applications, but also
the fastest growing (for 2017 + 19.3% YoY). 70-80% of all mobile downloads are
games; 93% of users who purchased within an application, paid for a gaming app.
According to NewZoo, by 2020 mobile games will exceed half of the entire gaming
market.
Smartphone games are the most profitable segment. Together with tablet games,
they grow by 19% (year on year to $ 46,100 M) and accountfor 42% of the game market.
One feature of mobile games is the easy implementation of micro-transactions and a
wide range of monetization models.
Mobile games are thus one of the most attractive industries for transition to
the blockchain economy for these reasons:
• A large number of micro-transactions and flexible monetization models
(IAP, ads, tournaments, subscription, etc.);
• The presence of limited and mostly centralized distribution channels;
• A large and distributed audience, ready to perceive new technologies.
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Figure 5 >> >>
The Global Games
Market 2017 Per Device
Type and Sector, NewZoo
27%
D ESKTO P
$ 29 .4 B n
-2 .6 % YoY
23 %
4%
31 %
42 %
MOBILE
$ 46 .1 B n
+1 9. 3% Y oY
32 %
10 %
31 %
C ONSOL E
$ 33 .5 B n
+3 .6 % YoY
> > 2.4
MOBILE APP
DISTRIBUTION
A quick look at the mobile app ecosystem uncovers the main pathways by which
mobile games spread:
• Through user search (recommendations, advertising, etc.) in a specialized
appstore, depending on the platform15;
• By default, through the supply of smartphones or tablets (OEM channels);
• Through Internet search (especially HTML5 or hybrid applications,
little represented in games).
Application stores occupy the central place in ecosystems, represented in a cen-
tralized architecture by a remote server and application manager on the user’s device.
The latter provides access to the server, downloading installation files and installing them.
15 It means native apps - a group to which most games belong
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Figure 6 >> >>
Mobile App Eco
system Structure
The tasks of the application store are based on the following basic
functions:
• File storage of installation applications;
• Verify that the application content matches local legislation and the selected
policy;
• Function of payment from the application through the payment gateways
of the store;
• Delivery and updating of applications to the user;
• Centralized application scanning for security;
• Search for related applications and recommendations (directory functions).
When analyzing the monetization of app stores, it appears that due to high com-
mission and control of payments, app stores are more like processing platforms, rather
than just file storages.
App stores are most commonly attached to their corresponding platform. Win-
dows is equipped with Microsoft Store, Android applications have Google Play, iOS
is equipped with the App Store. These stores are official and included in the default
operating system. In some regions, it is widely believed that there are no
alternative distribution channels (at least for native applications); however, even for
Android and iOS, the number of alternatives is more than 40.
The most popular store is Google Play with 3.5 mil applications. However, its
popularity reveals uneven distribution. In North America and Western Europe, the
popularity of
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Figure 7 >> >>
Android+iOS16
Table 1 >> >>
Asia App Stores
iOS applications and AppStore is commensurate. Android platform is the most pop-
ular in developing countries. However, in Asia, and especially in China,
alternative platforms have great popularity17:
Ranking
1
2
3
4
5
6
7
8
9
10
English Name
MyApp (Tencent)
360 Mobile Assistant
Xiaomi App Store
Xiaomi Game Center
Huawei App Market
Baidu Mobile Assistant
Oppo App Store
Sogou Mobile Assistant
Vivo App Stor
Vivo Game Center
Market Share
25.1%
16.1%
12.5%
11.9%
10.1%
9.9%
7.9%
4.4%
3.6%
3.6%
16 Wikipedia
17 TOP 10 ANDROID APP STORES IN CHINA, NewZoo
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Google Play is not even in the top ten of Chinese application stores. Despite the
global popularity of the two official stores, they are not without fault.
• A large number of applications in conjunction with a poor search function
do not allow developers, especially beginners, to promote their
applications effectively;
• Official stores have a fairly high commission (up to 30%). Together with
the first problem, this makes it difficult for starting studios to make a profit;
• Apple’s App Store adheres to a closed policy regarding its operating system
and the implementation of a full-fledged application store for iOS is
difficult. In fact, third-party shops can only be used by the owners
of unlocked smar phones, which are a minority;
• Google Play is an open ecosystem; any business can try to implement
its own store. However, in its repository, Google conducts a complex and
often incoherent policy regarding the availability of applications.
• Alternative markets are divided into several groups:
- Manufacturers of equipment (OEM), whomake the store according to their
brand. For example, Samsung, Amazon or Xiaomi. Typically, the market
volume of these participants is limited by the percentage that falls on their
equipment by pre-installing their applications by default;
- Regional markets: mainly Chinese, to some extent Yandex (Russia).
These participants compete due to specialized content and better
adaptation to local legislation.
The A ptoide store occupies a special place. First, it’s a fairly old store
established in 2010. Second, the store is positioned as an independent, not as-
sociated with any of the equipment manufacturers. Third, the store was the first
to initiate an entry to the crypto space, preparing for the ICO with its AppCoins token.
The problem with the current store is that many of its applications are placed by
users (in a decentralized manner), not by developers. This situation reduces the
revenue of those developers who have not authorized the use of their apps.
Comparing the dynamics of application stores, the relevant data on the market
for blockchain solutions and the growth rates of mobile applications, we can draw the
following conclusions:
• The mobile gaming market needs its own decentralized content distribution
system;
• Mobile games must have their own financial processing platform that
allows them to pay for the purchased values by both fiat means and crypto
currency, commissions from transactions must be radically reduced;
• Such a system should be initially integrated, supporting both the
dissemination of information about applications and other participants in
the ecosystem (OEM manufacturers, advertisers).
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> > 2.5
AI AND FRAUD
PREVENTTON
The technology of artificial intelligence is one of the currently trending topics
and is at the forefront of progress. The total economic benefits from the introduction
of AI are estimated to be $36.8 billion by 202518. Technological giants such as Google,
Amazon, and Microsoft spend up to $40 billion per year on AI-related technology, es-
pecially in five main areas: robotics, autonomous transport, computer vision,
virtual agents and machine learning.
The technologies listed above have various practical use adaptations already.
The most adapted use scenarios19 are the following:
• Trading & Investments;
• Card linked Marketing;
• Consumer Behavior Analytics;
• Fraud & Risk Management.
Machine learning can significantly reduce the risks of processing in payment
systems. According to the PWC report20, more than 30% of banks already use AI to
detect fraud and violation of payment gateways. AI is also able to identify atypical be-
havior of counterparties and block this activity. New fintech startups also use Machine
Learning to detect various types of fraud.
• Chinese companies Baidu, Alipay, WeChat actively implement AI in their
payment systems;
• US-based start-up Kensho distributes specialized AI financial modules in
partnership with S & P Global;
• A successful start-up investment company from Germany Fraugster21,
Simility22 and many other initiatives set the vector in fintech solutions.
The arrival of new digital technologies, such as blockchain system, has changed
the approach to the security of financial transactions. Blockchain preserves the
full and anonymous history of transactions; protects the unchanged data with
reliable encryption methods; and the specific Proof-Of-Work (Proof-Of-Stake)23
mechanisms al-low for the avoidance of mass attacks. However, the access system
itself (secret keys) remains vulnerable, as do the algorithms embedded in the system
of smart contracts.
Any financial system faces similar types of abuse. In 2016, criminals secured
money from the Central Bank of the USA using the SWIFT system. The sent
messages were properly formed and certified, but the authorization system itself
was attacked24.
18 Artificial Intelligence for Enterprise Applications, Tractica, 2016
19 Fintech Outlook for 2018, OPUS
20 Financial Services Technology 2020 and Beyond: Embracing disruption, PWC
21 TechCrunch, 2017
22 Venturebeat, 2017
23 Known principles protecting from the abuse associated with mining
24 Cyberthefts In Banks Highlight, American Express,
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Similarly, the crypto economy has also suffered a significant number of security in-
cidents. In August 2016, the Bitfinex exchange was hacked, and $65 million worth of
crypto funds were stolen. Even larger losses were suffered by the MT.GOX exchange for
a total of $460 million25. The well-known events with The DAO26, numerous thefts from
users’ wallets — all speak of the need to implement an integrated system for
protecting users, most of whom will not keep their funds in “cold” wallets. Additional
emphasis is placed on specific problems associated with mobile applications.
Mobile applications have reached unprecedented distribution. According to the
Nielson report27, 98% of US Millennials do not part with their mobile phones, referring
to them when searching for information and for shopping, entertainment and games.
The average smartphone has more than 26 downloaded applications and at least 1-2
games. According to eMarketer28, the average adult in USA spends 23 minutes a day
playing mobile games. Most of the mobile applications are free to download. But all
of them are developed using real money and require monetization to support the
business. The main monetization models are subscription, advertising, and for
gaming solutions also the sale of domestic goods (In-App Purchases), and recently,
tournaments. According to eMarketer, just the advertising market will be
accountable for $200 billion spent by 2019.
However, where there is money, there are fraudulent attempts to redistribute
these flows. According to the research of LexisNexis29, annual losses from fraud
on the mobile advertising market are $350M. For every dollar in mobile
transactions, the losses reach $2.83. The good news is that anti-fraud tools also
developed. The most effective solutions are based on Machine Learning: the user
who downloaded the application already has a history of interaction, geography and
some profile. An analysis of its behavior and identification of atypical scenarios can
be used to identify fraudulent intentions using different models of monetization.
An essential circumstance is the combination of a large amount of data (Big
Data) with adaptive analysis algorithms. For example, using such data, it is possible
to identify geographic regions with high risks30, certain categories of transactions
re-quiring increased attention, as well as user patterns based on characteristics such
as the following:
25 THE INSIDE STORY OF MT. GOX, Wired.com
26 The DAO Attacked, Coindesk
27 Mobile Money, Nielson, 2016
28 US Time Spent with Mobile, eMarketer, 2017
29 True Cost of Fraudsm Study, LexisNexis, 2016
30 MOBILE AD FRAUD, AppsFlyer, 201
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Figure 8 >> >>
AppFlyer: Share of
Fraudelent Devices
Out of total Unique
Device In Top Markets
(Android)
• IP-related — sharp peaks of activity from one IP or range;
• Consistencypatterns: uniformity of requests, switching between installations,
non-human invalid traffic;
• Device-IDrelated: for example, multiple IDFAs for a single IDFV;
• Performance-related: ultra-high response, unjustified traffic, etc.
• Mismatches: mismatch of the application version with the current one, bias
in the geographical range, unusual amounts of transactions, etc.
A feature of the mobile gaming market is a large number of non-professional eco-
system participants, whose behavior is ascertain to determine by a deterministic
description. In this case, algorithms with fuzzy logic or algorithms based on neural
networks come to the rescue.
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According to the available marketing estimates31, in 2018, an entire pool
of products is expected to appear, focused on transaction security using
machine learning algorithms. Startups FeedZai, Socure, Appthority, Darktrace
develop new solutions for existing financial systems, facing an open task to
implement AI in the analysis of systems related to crypto economy.
A large number of companies that tokenize gaming applications32 and pay-
forms need to strengthen the transactional part, introducing an integrating solution
with AI capability that would include but not be limited to fighting fraud.
Other special AI tasks include the following:
• Provide tournament games;
• Score in the overdraft functions;
• Cluster mobile applications according to user preferences;
• Build a compliance model and monitoring applications from the point
of view of local legislation (adult content, gambling, etc.);
• Control the exchange rate of game currencies.
31 Cybersecurity’s Next Frontier, CBINSIGHTS, 2017
32 Game Protocol, Game Machine, PlayKey, ENJIINE, ESPORTS.Com и т.п.
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> > 3.1
PRE-HISTORY
> > 3.2
MARKET
OPPORTUNITIES
3 THE BGX PLATFORM
One of the platform’s founders formulated the concept of BGX in early 2017,
after which he invited three distinct technology groups that were developing in-
dependent solutions to participate in the project:
• The XELOPES Project (St-Petersburg)on the study of the possibilities of
artificial intelligence in the field of controlling financial flows under the
leadership of Dr. Barseghyan and professor of State Voronezh
University A.P. Parkhomenko. The XELOPES project has been
developing since the early 2000s and has numerous implementations in
the projects of BASF AG, Deutsche Post AG, GlaxoSmithKlineand other
customers;
• The QUICKLINK Project (Toronto, St-Petersburg)by an innovative Canadian
company DigitalXpert Inc. implements a processing core for micro-
transactions;
• The TITAN Project (Vietnam) — building a mobile messaging client with
the capabilities of a crypto-wallet (Extensible Messaging and Presence
Protocol — XMPP, Multi-End Message & Object Encryption — OMEMO,
Off the Record Messaging Protocol – OTR).
The main idea was to use the available technical components to build a fully
functional financial platform. The BGX Company was formed and delegated
with the task to develop a system focusing on mobile games. The founders of
the new company decided to make its project open-source under the LGPL
license (with the exception of several proprietary protocols). Any external
developer can join the team and receive a reward in BGX tokens, while the
holders of the technology modules have the right to vote in the technology board
of the platform.
BGX is the first integration platform in the field of mobile games equipped with
artificial intelligence and with an emphasis on processing. This approach not only
brings the technological solution to the market but also creates a democratic eco-
nomic model for the participants in the ecosystem of mobile games.
Currently, mobile games are experiencing significant growth. This market seg-
ment is also the one most ready for a practical transition into the blockchain, since
it is already actively engaged in the virtual economy through internal game tokens
and traded virtual goods. However, like any living ecosystem, mobile games are not
without certain problems.
OPPORTUNITY 1: Integration in the process of decentralization
In late 2017 - early 2018, a large number of game projects entered the market
of cryptocurrency and announced the release of their tokens. Marketing research
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Figure 9 >> >>
The growth of ICO in the
gaming sector
shows33 that the average player uses several gaming applications at the same
time and switching between them is a common phenomenon. According to Icori-
um34, by the end of 2017 the gaming industry occupies an honorable third place
among all ICO’s — more than 96 issues of tokens have taken place. Most of the
solutions are related to bets and tournaments, purchases of skins and domestic
goods in games. A separate direction is the rapidly developing e-sports.
Future users face a large number of highly specialized tokens that
require reliable financial services to work with the storage of tokens, the ex-
change of tokens, microcredit, and interfacing with fiat systems.
It should also be noted that implementing a simple exchange of game to-
kens and other tokens would be difficult because of the high volatility of cyber
assets. A separate integrated processing platform is required.
OPPORTUNITY 2: App stores
Mobile games are not only the most popular category of applications, but also
the fastest growing (for 2017 + 19.3% YoY). Seventy to eighty (70-80%) percent
of all mobile downloads are games, 93% of users who paid for an application paid
for a gaming one. At the same time, the standard two application marketsare
dominating: Google Play and the App Store take up to 30% of the game’s profits.
According to iMore35, 80% of developers do not earn enough money to
upkeeptheir business.
33 App Annie 2017 Retrospective App Annie 2017 Retrospective
34 http://icorium.io/
35 Game Statistics, iMore, 2017
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Moreover, official app stores (Google Play and the App Store) often
contain millions of apps. For a starter-developing studio, it is difficult to stand out.
It is nigh impossible to create their own means of distribution, as these two
stores actively discourage the creation of alternative shops36.
In a decentralized economy, an open specialized payment platform is required
to deliver games to the user, to process game transactions, and to provide a fair
profit distribution system.
OPPORTUNITY 3: The absence of a specialized AI engine
In a distributed mobile game environment, millions of games are simultaneously
participating. Different models of monetization are used, and the probability of danger-
ous and dishonest actions on the part of intruders is high. To provide a flexible and
adaptive solution, a decentralized artificial intelligence system that solves specific game
tasksis needed.
Smart contracts of the Ethereum network allow for a distribution of profits in
a determinate and open manner. At the same time, fuzzy tasks, a multivariate analysis
of the environment to exclude the unfair holding of tournaments, require the
application of A.I. In addition to the problem with fraud in the delivery of advertising
that is described above, there are problems with tracking transactions when a user
loses private keys. Moreover, there are specific user-interaction tasks, such as
developing recommendations for games, matching in tournaments, etc.
A successful processing platform must be equipped with Artificial Intelligence.
OPPORTUNITY 4: Lack of support for monetization game models
Currently, 90% of in game spending in the US falls on the Free-to-Play model37.
Three ($3) dollars is the average price that the players consider acceptable for in-
game purchases, or paid amplification in the game. The gaming industry is
looking for new monetization models that would allow distributing revenues
evenly between top producers and talented young talent studios.
In 2017, the growth of e-sports revenue was 41.3%, and by 2020 the revenue will
be up 1 500 000 000 USD. The main model is tournaments and attraction of professional
teams through the mechanisms of the prize fund. Other income items are broadcasting
organization (streaming) and betting (betting).
36 Google Facing Complaint in EU from Aptoide over App Store Practices
37 FactBrowser – “Mobile Game Fact Feed”
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Figure 10 >> >>
Game Monetization
Model by Statista
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Game solutions support various models of monetization (often several), while
support for such models is more efficiently performed when there is embedded pro-
cessing. Thus, the processing of mobile games should support specialized models
of monetization.
SOLUTION
BGX solves these problems by building a multifunctional processing platform,
implemented over an artificial intelligence system (Artificial Intelligence) with a set
of built-in tools for a wide range of mobile games.
These are the basic principles of building a platform:
• Iterative development and creation of the community from the moment
of the active phase — Agile / DSDM Atern; alignment of working
methodology to DevSecOS for security;
• Modular functional architecture, allowing separate development of
the main components and the use of common protocols and frameworks;
• Open source code stored in the GitHub repository;
• The implementation of the CCSS38 standard and PA-DSS39 is the basis for
security on the client side;
• A special focus on interoperability of the platform, its integration with
existing solutions.
38 CryptoCurrency Security Standard
39 Payment Application Data Security Standard
25
Figure 11 >> >>
BGX Focus
> > 3.3
BGX ECOSYSTEM
BGX unites players in the gaming industry, providing functionality depending
on the role:
• Node holder: An organization that installed BGX platform site software on
its servers and makes the platform available for use by other participants.
The first node is set up by the BGX organization, passing all the code to its
partners. The playing user perceives the node as an app store for games
and as the server component of the virtual wallet. In return for supporting
the node, the holder receives a part of the commission for processing.
• Gamedeveloper: A studio or single developer uploads SDK — library, allowing
him to connect BGX functions to their game. The developer does not need
to adapt his game but uses ready-made templates for connecting to BGX
functions. With each transaction, the developer receives 90% of the
revenue, while 10% is provided to the platform;
• Player: The consumer of game products that have the BGX SDK enabled.
The Player interacts indirectly with BGX through the game itself, but also has
avirtual wallet that allows him to have an account, pay for virtual goods /
tournaments with BGX tokens (or compatible gaming tokens), take out
overdraft, buy tokens in store in exchange for crypto- or fiat currency,
to receive offers based on loyalty and game participation;
• 3rdPartyAppStore: A regional or functionally dedicated gaming application
store that implements content delivery functions, but leases payment
functions from the BGX platform. The store receives 90% of generated
revenues it then shares with game developers accordingto their own
policies;
• Advertiser: Distributes advertising through API platforms, pays the cost of
ads in accordance with the established CPA / CPI;
• Blockchainagents: Facilitate the exchange of BGT Coins and BGX
tokens with another currency and execute BGX’s smart contracts;
• Exchanges: Participate in the exchange of the BGX token at the market rate.
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> > 3.4
DISTINCTIVE
FEATURES OF BGX
BGX has a full-featured model that supports all ecosystem participants:
• Implementation on top of the Ethereum Blockchain, as a hybrid
solution — with a system of dedicated nodes and the ERC-20 BGX token.
Supports hot and cold user wallets, currency exchange, virtual player
wallet and overdraft function;
• The platform focuses primarily on mobile gaming applications and
supports all of the necessary functionality that forms a single ecosystem
of developers, users-players, advertisers and partners;
• Ability to distribute games outside the stores of Google Play and App
Store applications: search, rating, feedback, reliability check
and infrastructure functions;
• Built-in (Native) system of advertising support and its monetization
based on the system of “smart” contracts without intermediaries
equipped with adaptive filters and automated conversion accounting
subsystem;
• Support for modern gaming capabilities and monetization models,
including tournaments in various modes, functions of augmented reality
and the market of in-game products;
• Built-in AI-system based on neural networks that supports the main
processes of the platform: smart registration of users, holding
tournaments with the control of fairness (anti-cheating)
and game promotion.
> > 3.5
BGX
COMPONENTS
BGX is implemented as a full, decentralized platform, consisting of several com-
ponents that interact with each other over the Internet using a specialized protocol for
data synchronization.
The main components of the system:
• Node — One or more support nodes that facilitate the main functionality
of the platform:
- Filestorageof installed game applications;
- Processing user accounts, issuing a virtual wallet and processing user
debts;
- AI — a fuzzy neural network that monitors transaction parameters and
other platform processes;
- Advertising function support;
- Interactionwith exchangesin attached / detached mode.
• BGXWallet — A virtual walletwith built-in support for BGX and BGT
currencies. Works as a client of a platform node, as well as a client of fiat
systems when buying tokens for fiat money;
• SDK — A specialized component included in the games that
produces seamless interaction with the functionality of BGX nodes
without resorting to a wallet.
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Figure 12 >> >>
BGX Infrastructure
API
API
> > 3.6
BGX ADVANTAGES
3.6.1 ADVANTAGES FOR THE INVESTORS
BGX is a promising solution that provides a number of advantages for system
participants. When buying BGX tokens, investors become participants of an
innovative club and receive the following:
• The ability to participate in the growing project; access to participation in
the economy of the platform with the use of exchanges and other financial
instruments;
• Access to the rapidly growing mobile games market;
• The ability to exchange BGX tokens for low volatility BGT game tokens
and pay for compatible game services.
3.6.2 ADVANTAGES FOR DEVELOPERS AND PARTNERS
BGX brings these gaming solutions to developers:
• Ability to connect their games to the core features of the crypto
economy, including payment by cryptocurrency;
• Low commission when purchasing through BGX payment mechanisms (no
more than 10%);
• Game promotion on the crypto platform and independent store / stores;
• Reliability and security of payment mechanisms provided by the
combination of blockchain and A.I.;
• Support of tournament functions (for competitive games);
• Built-in relevant advertising;
• Developers release their own tokens.
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3.6.3 ADVANTAGES FOR GAMERS
Players experience these advantages:
• The ability to buy game tokens for both fiat and for cryptocurrency;
• Support for the overdraft function;
• Ability to use low-volatile BGT Coins to pay for game functionality;
• Ability to exchange BGT Coins for perspective BGX tokens and to take out
their earnings in cryptocurrency;
• Ability to output BGT Coins into fiat tools;
• A virtual wallet representing a player’s account and a loyalty platform;
• Transaction protection and referral system supported by AI.
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> > 4.1
DECENTRALIZED
PAYMENTS
PROCESSING
Figure 11 >> >>
Traditional and
Blockchain Approach
4 TECHNOLOGY
BLOCKCHAIN IMPACT
The Blockchain is one of the most revolutionary technologies in IT. The essence of
this technology consists of the decentralized storage of information in an environment
without trust. Blockchain consists of nodes supported by the miners, each node contains
a chain of blocks, which are a set of transactions signed by cryptographic functions.
The advantage of a decentralized approach is in democratization of the
decision-making profit distribution and a corresponding decrease in the share of
business spending operations.
After Ethereum appeared in 2014, it became possible to perform additional func-
tions with the nodes: the calculation of smart contracts. One of the most important
achievements of this technology is the formation of a completely new economic
paradigm.
Cryptocurrency transactions on the blockchain between one storage address
and another are verified in the network nodes using one of the verification
mechanisms: Proof-of-Work or Proof-of-Stake. Such mechanisms enable a
consensus among the participants in determining if the records in the distributed
database are written correctly or not. The records of transactions are stored in an open,
but not changeable form. The addresses participating in the cryptocurrency transfer
maintain anonymity and do not disclose their owners. This makes public audits of
records possible, prevents malicious acts, censorship and excessive regulation. The
appearance of some value in cryptocurrency makes it possible to exchange it for real
(fiat) money, allows cross-border transfers and independent storage of funds outside
centralized banks.
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This phenomenon intensified with the introduction of secondary
cryptocurrencies to the market, allowing one to tokenize the functions of applied
systems, create one’s own payment systems, trade them on stock exchanges, and
create new models of monetization.
Currently, there are dozens of popular blockchain networks that have generated a
whole set of tasks for their exchange and payments in these currencies.
BGX is built as an information system that is a part of the crypto economy with a
focus on mobile games. BGX interacts with several blockchain networks through special
drivers (listeners), allowing one to make payments in various cryptocurrencies and writ-
ing data to the Ethereum blockchain.
Ethereum is a decentralized platform for creating blockchain based services.
The basis of this platform is smart contracts: small programs that are run by
Ethereum nodes under specific conditions. Such smart contracts are written in a special
interpreted programming language (for example, on Solidity).
In fact, Ethereum is a distributed virtual machine, the nodes of which are supported
by the miners receiving gas - payment for the computing power provided.
Inside Ethereum, decentralized applications (DApps), similar to sites on the In-
ternet, implement their own functions. Just as tokens in an amusement park represent
the right to access a carousel, DApps have their own tokens, allowing users access to
these functions dependent on the number of tokens.
The ERC20 standard is a technical specification for a token making it com-
patible with external systems, allowing the exchange of these tokens on markets, and
ensuring their use in creation of other products.
ERC20 provides four main actions:
• Obtaining the total number of tokens;
• Getting a balance on the account;
• Transferring tokens from one group to another;
• Confirming the use of the token as an asset.
BGX uses two types of token:
• PLATFORM TOKEN (BGX) — a token compatible with the ERC20 standard
that provides access to platform capabilities and supports its economy;
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• APP TOKEN (BGT) is a fixed application-level token (game token)
that has a standardized cost and protects gaming applications from the
volatility inherent in crypto platforms. BGT is not compatible with ERC20.
For more information on tokens, see the Platform Currency Section.
The capabilities of blockchain systems are impressive for many applications, es-
pecially in terms of storing immutable information. However, when it comes to
creating a payment system, there are a number of limitations. A dedicated node of
Ethereum has a theoretical transaction limit of 1,000 per second determined by the
available gas consumed for each unit it generates. However, even this limit is not
achievable40. The real speed is currently 7 Tx/s. In this sense, direct blockchain
transactions (on-chain) are expensive and slow, making their use in the gaming
industry inapplicable.
The situation with storing large pieces of information directly in the blockchain is
much worse. According to BITINFOCHARTS estimates41, the average transaction cost
for Ethereum (average tax costs) is approximately $0.038. A record of 1kb costs
$0.25-0.32, which is quite noticeable ($76,000 USD per GB of storage).
Given the data of the mobile gaming market, the following necessary require-
ments can be approximated for the BGX system:
• The number of users (the whole market) is 1.5B. If the system takes 20% of the
market in 5 years, it will be 300 million users;
• Considering that the average user makes 1 transaction per day, the
required throughput is met: 3,472 transactions per second;
• Assuming an average transaction for 200B, we get traffic of 694Kb per second
or 6Gb per day. That would cost $456,000 on Ethereum — just per day.
Thus, the dynamic recording in the Ethereum blockchain is impossible under the
current conditions.
40 https://etherscan.io/
41 https://bitinfocharts.com/ethereum/
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A natural way to improve the situation is to perform operations outside the block-
chain, using blockchain only for operations that require external connections (for exam-
ple, withdrawal of funds in Ethereum). This approach is called off-chain and is now being
developed for popular blockchain systems:
• Lightning Network (Bitcoin);
• Raiden (Ethereum, compatible with ERC20);
• Plasma (autonomous smart contracts);
• OmiseGO (based on Plasma).
On-chain and off-chain transactions coexist and allow a balance between the
required speed and load. Since the current off-chain solutions are under de-
velopment, the following hybrid solution will be used in BGX until a stable solution is
obtained:
• Within one node, it is planned to have developers deposit BGX, which would
al-low them to perform transactions with the BGX tokens within the set limits
• To exchange data between nodes, the Hashgraph42 blockchain will be used,
since it has the acceptable parameters to conduct the necessary
traffic through a node.
BGX is implemented on top of the Ethereum blockchain system, and despite the
mechanisms of off-chain transactions, needs to interact with the large blockchain.
To do this, each BGX node has a special BLOCKCHAIN LAYER. This layer manages
the written and extracted data.
In addition to Ethereum, the project needs a connection with partner networks. A
Listener is implemented for each of them:
Wanchain — implements cross-chain smart contracts;
Dash — digital Internet currency for instant transfers;
Ripple — cryptocurrency platform for payment systems, focused on transactions
with the exchange of currencies without return of payments.
42 https://hashgraph.com/
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Figure 14 >> >>
Node Structure
> > 4.2
PLATFORM
ARCHITECTURE
BGX WHITE PAPER
The basic requirements for architecture are formed through the following attri-
butes43: scalability, performance, security, reliability, and so on.
The ideal architecture of the processing system should be the following:
• Highly scalable (support up to 1000 nodes, at least 2 million applications);
• Productive (no less than 3000 transactions per second);
• Secure (corresponding to security standards in the field of payments, trained
with AI);
• Reliable (no less than 99.999% availability);
• Flexible in use (expandable in connection with new models of monetization);
• Interoperable (interacting with various payment gateways and blockchain
eco-systems).
Responding to these requirements, BGX has a service architecture that includes
several interacting components:
43 Attribute Driven Design, Software Engineering Institute
34
• Node — The main part of the platform, represents the server functionality.
The system can contain up to 1000 nodes interacting witheach other using a
protocol implemented on the Hashgraph. All nodes are equal and can
perform distributed processing. With Nodes through the API, external
clients — the wallet application (BGX Wallet) and the installation
manager (App Manager) interact;
• User wallet (BGX Wallet) — External application (web, Android, iOS),
maintains the user’s game wallet, buys and sells tokens and their
exchange;
• The installation manager (App Manager) downloads and
installes games, deletes and updates them;
• SDK implemented in the game, realizes the payment functions within the game.
BGX is built on a modular basis; each module implements its own set of functions.
This approach allows separate data packets, is developed by several groups and mini-
mizes technological risks. The table below shows the main modules of the system.
Table 2 >> >>
Main System Modules
1 Ledger
2 Smart Contract
The current blockchain channel and the connections
support the data status
The software launched in the Ledger determines the
execution of logic for translating and modifying digital
data
3 Smart Order Routing & Gam- Monitoring transaction flows and data changes, reading
ing revenue
of data from formed blocks, distribution of prize funds
4 Universal ID System
Support user authentication, authorization and
related processes
5 Event Processor
Work with notifications for transactions, tracking events
in smart contracts and AI, logging operations
6 Instant Reporting
The module allows generation of analytical reports
on the processing work
7 System Management
Ability to create, modify and monitor the components
of blockchain
8 AI Network
Creates, modifies and monitors the components of
artificial intelligence system; tracks the correctness of
information processing, as well as a set of tools
9 Tokenization Genesis Module Module that generates BGT Coins or releases tokens
for the developer
10 Virtual Game Wallets
Supports the user's personal cabinet, account
management
11 System Integration
Integrates the blockchain solution with external
solutions
12 Virtual File System
Stores installation files and related components
13 APP LIFT
Supports the flow of game delivery to the user
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14 Ad Engine
15 In-App Purchases
16 Streaming Engine
17 Tournament Engine
18 BIFROST Module
Supports advertising and its statistics
Supports the internal store in the game
TWITCH service support
Supports the processes of reserving and distributing
the prize fund
Funds and exchanges gaming tokens
The system modules are distributed through the logical layers of the architecture:
• Factory Tier — Components of Blockchain (both Ethereum and guest
systems). In addition, this layer manages access parameters and roles,
opens and closes payment channels;
• Integration Tier — Binds off-chain and on-chain transactions; also connects
AI to processing;
• Shared services — Data exchange and common components for all modules;
• Utility Services — File storage, logging, error handling, data availability control;
• Analytics and Operational Insights — Generates reports on the activities of
various components, prepares training data for downloading to AI.
> > 4.3
ARTIFICIAL
INTELLIGENCE
Artificial Intelligence is a BGX subsystem that performs three functions:
• Blocking suspicious transactions (fighting fraud);
• Controling of the tournaments held in competitive games;
• Clustering applications and development of recommendations to the
user, taking in-to account the developer rating (generally determined by
the number of transactions and the time of work with the platform).
The implementation of the AI subsystem in BGX is based on a neural-fuzzy Ade-
line-type network (Adaptive Linear Neuron). Neural-fuzzy or hybrid solutions include
fuzzy logic algorithms and neural networks, taking advantage of the hybrid approaches.
Fuzzy logic systems are successfully used to explain their decisions, but they cannot
automatically replenish the system of rules necessary for making decisions.
The neural systems, conversely, are successfully used in the recognition of
models, but they cannot easily explain the way of solving and correcting the
algorithms. These constraints have served as the impetus for the formation of hybrid
systems that take advantage of both approaches and level the shortcomings of each.
With the increase in the number of violators and the increase in the number of
thefts of financial resources from users’ personal accounts in processing systems, the
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introduction of specialized fraud detection systems for additional verification based on a
number of input parameters has become popular.
The typical transaction attributes include:
• User ID;
• Transaction identifier;
• Description of the transaction;
• The amount of the transaction;
• Place of transaction;
• A Boolean variable that defines a transaction as a fraudulent (true)
or legal (false).
There is a set of descriptions of permissible transactions, as well as a set of
data considered a description of fraudulent transactions. A typical user has a unique
behavior profile in terms of payments. Since the habits related to spending money vary
depending on many factors: a transaction worth $5,000 may look like a fraudulent
one for a particular account but may be entirely acceptable for another.
The Adeline network used in the project represents an adaptive linear
weighing adder with a delta at the output. There are six main stages in the process of
preparation:
• Normalization of fuzzy set of input parameters;
• Fuzzification, assessment of the degree of compliance with the rules;
• Calculation of the contribution of the rule set;
• Summation of contributions of fuzzy rules, decision making;
• Training of the neural network;
• Self-organization and adjustment of the fuzzy model.
The use of two approaches (neural network and fuzzy logic) bridges the
learning and computing power of neural networks with fuzzy logic and enhances the
intellectual capabilities of neural networks typical for the human way of thinking by
making the decision-making rules unclear.
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Figure 15 >> >>
Adaptive linear weighing
adder with delta output
> > 4.4
FILE STORAGE
The blockchain technology aims to store small transactions. Therefore, a
separate service is required to store applications. Such projects as Storj, SIA,
FileCoin work to solve this problem, but technologically they are still at the
conceptual stage. On the other hand, the file storage application service for BGX
nodes must solve several overlapping tasks:
• Store both individual copies on one bridle (if tthe site’s purpose is storing
exclusive content) and synchronize content between nodes;
• Apply security filters to stored content;
• Autonomous mechanism displays content and updates current
versions.
DHT technology proposes to solve the problem of distributed content storage.
DHT (distributed hash table) is a class of decentralized distributed systems of a
search service that works like a hash table, characterized by the following properties:
• Decentralization: the form of a system of collective nodes without coordination;
• Scalability: the system will function equally effectively for thousands
or millions of nodes;
• Failover: the system will be equally reliable with nodes permanently
connected, disconnected and protecting from single-node errors.
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> > 4.5
CYBER SECURITY &
DATA PROTECTION
BGX designs and proposes to maintain its security architecture (logical and
physical), policies and procedures in accordance with the most widely-adopted
international security stand-ards, regulations, and controls frameworks such as the
ISO 27001/27002, ISACA COBIT, PCI, NIST & the CSA. BGX presents this architecture in
line with ISO 27000’s (2013) documentation and or-ganizes them into a high-level
taxonomy consisting of 114 individual security controls across 35 categories consisting
of the following 14 domains:
1. Information security policies — BGX has established, reviews and regularly
updates its information security policies. These policies provide the basis for all man-
agement decisions that could, in any way, affect the BGX value chain that includes,
but is not limited to BGX itself, its employees, consultants, contractors, investors
and suppliers.
2. Organization of information security — BGX clearly defines all security-re-
lated roles and responsibilities and, where appropriate, mandates strict segregation of
duties.
3. Human resource security — BGX applies appropriate levels of scrutiny to per-
sonnel prior to, and where necessary, during engagement/association with BGX.
4. Asset management — As a consequence of its distributed nature, BGX has
has necessarily adopted a three layer ‘Responsibility’ model for assets that operate as
part of the BGX network. All identified assets are identified, inventoried, classified, as-
signed (responsibility) and risk-assessed according to their category. The three
categories are:
• A ssets directly under BGX control in a BGX owned/controlled
environment: BGX assumes full responsibility for devices directly
under its control. This includes network devices, storage devices,
servers, computers, laptops, tablets and mobile phones;
• Assets directly under BGX control in a 3rd party environment: BGX adheres
to the ‘shared responsibility’ model with clearly-defined responsibility
demarcations drawn between those services for which the service
provider is liable (e.g. SaaS, IaaS, PaaS models), and those for which BGX
is liable. For Cloud-based services BGX has adopted the Cloud Security
Alliance’s Cloud Control Matrix (CSA-CCM);
• Assets indirectly under BGX control in 3rd party environment: BGX adheres
to the ‘shared responsibility’ model with clearly-defined responsibility
demarcations drawn between those services for which the service provider
is liable (e.g. software assets performing cryptographic operations as part
of a 3rd party distributed data base, distributed ledger/blockchain service)
and those for which BGX is liable.
BGX WHITE PAPER
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BGX WHITE PAPER
5. Access control — BGX’s Identity and Access Management (IDAM) model op-
erates a layered series of interoperable ingress and egress access controls to and from
its network and network-based services. This model establishes pre-requisite role-
and attribute-based user & end-user device criteria to granting access, authorizing
specific actions, and applies appropriate levels of activity monitoring/logging for audit/
accounting purposes. Enhanced controls (multi-factor authentication) are used for all
privileged accounts, roles and actions.
6. Cryptography — BGX (CCSS and PA-DSS) | Policy on use of cryptographic con-
trols/Key management.
7. Physical and environmental security — Secure areas, equipment, physical
equipment security, physical access controls.
8. Operations security — Change management, capacity management, back-up
& archive, control of operational software, technical vulnerability management, Informa-
tion systems audits, Logging & Monitoring.
9. Communications security — Network security management, information
transfer.
10.System acquisition, development and maintenance — Security requirements
in information systems, security in development and support services, Test data.
11. Supplier relationships — ICT Supply Chain mapping/policies, service delivery
management.
12. Information security incident management — Responsibilities & procedures,
reporting, response planning, learning environment, audit trails/collection of evidence.
13. Information security aspects of business continuity management — BCM
planning, implementation, testing, review, ISO 22301:2012.
14. Compliance (internal & external) — Legal & contractual requirements, Infor-
mation security reviews, Data Protection Laws (e.g. GDPR).
BGX is a censorship-free platform. At the same time, there are a number of
threats that should be managed by the nodes that store applications:
• The location of potentially dangerous software modules (viruses, adware, etc.);
• Incorrect content from the point of view of the age or social groups (adult
programs, gambling, etc.);
• Pirated software, the use of which is illegal;
With respect to these threats, it is proposed to create a reference mechanism,
reinforced by a preliminary check:
• All deployed applications are automated for viruses;
• Application developers receive a general rating, based on the popularity of
applications (the number of downloads), the volume of transactions, the
number of comments44;
• When publishing a game application, developers choose a genre and
keywords that fa-cilitate the rubricating of games;
• Users have the opportunity to report an application. If the number of
complaints is large and the application developer’s rating is low, then
the application is quarantined and checked more carefully.
44 Comments are also monitored by the AI. According to Apptentive, the amount of fake
reviews can reach hundreds of thousands and continues to grow.
40
> > 5.1
TOKENS AND
TOKEN ALLOCATION
Table 3 >> >>
BGX Tokens and
BGT Coins
5 PLATFORM CURRENCY AND TOKEN SALE
The BGX Platform will have a dual token system. This system avoids the de-
structive impact of token volatility on the platform’s everyday economy and aligns the
incentives of those holding the coin waiting for it to appreciate in value with those of
the users, planning to interact with the platform.
The first token — the BGX Token — will be launched during the Token Generation
Event and represent the right to participate on the platform. The nodes of the platform
will be re-quired to have a certain balance of BGX Tokens to maintain their “Node” status.
Since the BGX Token can be exchanged into a second token — the BGT Coin — at any
time on the platform, holding the BGX Token is considered to imply an expectation of fu-
ture spending and thus enters the BGX Token holders into a Loyalty Club. All participants
holding the BGX Token will participate in the Loyalty Club, the main perk of which is
the revenue sharing program. Sixty percent (60%) of the platform’s revenue is
distributed among the BGX Token holders in tiers designated by the number of tokens
held.
The second token — the BGT Coin — is a utility coin exchanged on the
platform as method of payment. The BGT Coin is a white label token, meaning it can be
used on its own or a different name by the game or app market developers to use as
currency for in-app and app purchases, hosting tournaments, or any other game
incentives that allow players to earn from their playing time. Below is a simple
table, describing the two coins:
Type
Marker
Standard
Max Emission
Price
Where to Buy
Utility
Exchange
BGX Token
BGT Coin
Utility
Utility
BGX
BGT
ERC20
1,000,000,000
Unlimited — Tied to of Active
Users
$0.10 USD / Token at ICO. Then varies
$0.10 USD / Coin. Unchanging
price
TGE; BGX BIFROST Exchange; other exchanges BGX BIFROST Exchange
Node Participation; Loyalty Club
Platform Method of Payment
Exchanged between each other at the market rate of the BGX token against the
$0.10 USD / BGT Coin
BGX WHITE PAPER
41
The emission of BGT Coins is unlimited and will be tied to the transactions on the
platform. Each time a user spends an equivalent of $0.10USD to buy a BGT Coin, a new
BGT Coin is minted. Each time a user sells a BGT Coin to take his earnings out of the BGX
ecosystem, that BGT Coin is burned.
The value of BGT Coins will be subject to the same level of inflation as the US
Dollar.
The emission of BGX’s own utility tokens is justified when given the option of
using standard and pre-existing cryptocurrency. The BGX Tokens represent unique
rights to participate in the BGX Loyalty Club and thus cannot be tied to external
cryptocurrency. The BGT Coins are developed specifically to avoid the volatility of most
major cryptocurrencies; moreover, using it as a white label token by the BGX game
developing community also requires its separation from existing systems.
The emission of BGX Tokens is limited and is capped at 1,000,000,000 for the
entire lifetime of the platform. The allocation of the BGX Tokens is shown below:
• 50% or 500,000,000 BGX Tokens will be sold during the Crowdsale.
• 25% or 250,000,000 BGX Tokens will be retained in the Bootstrap Fund.
This Fund is allocated to engaging with the gaming ecosystem to motivate the
platform’s quickest adoption. The release of these tokens will be tied to the
project roadmap and will be allocated to incentivizing strategic partners and
motivating new users.
• 20% or 200,000,000 BGX Tokens will be allocated towards Founders,
Advisors, and Team and be subject to a 12-month holding period to ensure
their vested interest.
• 5% or 50,000,000 BGX Tokens will be used for the Long-Term Bounty
Campaign, which will start before the Crowdsale, but continue for two
years after to attract users.
Figure 16 >> >>
Token
Distribution
BGX WHITE PAPER
42
> > 5.2
CROWDSALE EVENT
AND FUND
DISTRIBUTION
Table 4 >> >>
Crowdsale Structure
In order to finance the development and marketing of the BGX Platform, a Crowd-
sale event will be conducted with the following characteristics:
Pre-Sale Dates
Sale Dates
Extensions
Total number of tokens
Tokens available
Nominal price
Bonus systems
Emission rate
Token Pre-Sale
Token Sale
Hard Cap
Soft Cap
Minimum investment
Token format
Accepted currency
Whitelist
KYC
Unsold tokens (if any)
Lockup
Delivery
Regional limitations
TGE platform
Apr 24 – May 15, 2018
May 22 – June 19, 2018
No
1,000,000,000
500,000,000 (50%)
$0.10 USD
Pre-Sale = 30% Discount
Crowdsale First 48 hrs = 25% Discount
Crowdsale Days 3-7 = 15% Discount
Crowdsale Days 8-14 = 10% Discount
Crowdsale Weeks 3-4 = 0% Discount
No further BGX Tokens created
30,000,000 of all tokens (3%)
Unsold during Pre-Sale + 470,000,000
$50,000,000 USD
$4,000,000 USD
$100 USD
ERC-20 Standard
ETH, LTC, BTC, Fiat (Credit card/Wire Transfer)
Yes
Yes
Burned up
Non
Within 48 hours after crowdsale conclusion
Please read Disclaimer
Ethereum
BGX WHITE PAPER
43
Figure 17 >> >>
Crowdsale Expenditures
The funds raised from the Crowdsale will be used for developing, marketing, and
supporting the platform:
DEVELOPMENT (50%)
The BGX Platform design accommodates the 200 million user target base.
Such a large ecosystem of economic participants is akin to those maintained by
Amazon, VISA, and other large financial providers. As such, even before earning
revenue, developing the processing capabilities of such an infrastructural and
commercially ambitious project is expected to consume the majority of the funds
raised. In the event of a fully successful Crowdsale reaching the hard cap, $32.5 million
of the funds will be used towards development. If the hard cap isn’t reached, the
following will apply:
• Raised $4,000,000 USD or Less. BGX CRYPTO-CURRENCY WALLET:
Development and launch of the BGX app marketplace. Ability of users to
create a virtual wallet and exchange crypto-currency into BGT Coins, BGX
Tokens and back. Use of the Ethereum blockchain to conduct transactions.
• Raised $10,000,000 USD or Less. BGX ECOSYSTEM MODULES: Smart Order
Routing & Game Revenue. Event Processor. Ad Engine. Universal ID
System. Virtual File System.
• Raised $15,000,000 USD or Less. BGX GAMING WORLD: Off-chain
instantaneous processing capabilities. Streaming engine. Tournament
engine. External node integration
• Raised $25,000,000 USD or Less. BGX SMA RT ECONOMY: More powerful
off-chain processing. Basic Artificial Intelligence Network Module.
Financial overdraft capabilities. Fully functional BGX Exchange Module.
BGX WHITE PAPER
44
• Raised $50,000,000 USD. THE BGX REVOLUTION: Highly advanced self-
learning neural network for fraud detection, financial transactions, game
matching and services. Global sub-ecosystems for games. Powerful multi-
revenue channels for developers
STRATEGY & OPERATIONS (15%)
The strategy and operations include the costs for different teams aimed at main-
taining and expanding the platform. Teams responsible for seeking out and signing
on new partners (business development), those responsible for the economy of the
platform (financial team) and the whole cost of the project’s operation (operations —
events, additional processing nodes and more) will depend on this team. In
accordance with how much we raised, the project’s scale and needs will require
different levels of support; therefore, a percentage method of calculating this budget
is used.
MARKETING (15%)
Just as with Strategy & Operations, the Marketing costs and activities will
vary with the scale of the platform and the amounts raised. Marketers will incur costs
through platform promotion to more participants: developers, users, app stores; all to
drive the usability and value of the platform, decentralizing and democratizing the game
industry, and providing BGX Token holders with additional sources of revenue.
LEGAL (20%)
The Legal costs will be incurred when ensuring compliance with international
markets in the areas of banking and financial laws, technical regulations, corporate and
tax structuring, as well as any other policy compliance.
> > 5.3
THE ECONOMY OF
THE BGX PLATFORM
The BGX Platform aims to support the entire economy of the mobile games eco-
system. BGX identified the MAIN types of participants of the platform who interact
with each other. These include the following:
1. The BGX PLATFORM
a. BGX DEVS — The founding developers that built the infrastructure;
b. The NODES — Off-chain transaction validation, app market data storage;
c. The HOLDERS — People or groups holding the BGX tokens;
2. The AD PROVIDERS — Internal and external ads;
3. The GAME DISTRIBUTORS
a. The APP MARKETS — App placement clusters;
BGX WHITE PAPER
45
b. The GAME DEVELOPERS — Platform content developers;
4. The PLAYERS — End user, playing and streaming for fun and to earn.
All transactions within the platform use BGT Coins, which can be bought at the BGX
Exchange using crypto and fiat currency at a rate of $0.10 USD / BGT Coin. Each BGT Coin
is generated at the time of purchase. BGT Coins can also be sold back to the Exchange at
the same rate. Each BGT Coin is burned at the time of sale.
Figure 19 >> >>
Player Transactions
5.3.1 PLAYER TRANSACTIONS — APP MARKETS & GAME DEVELOPERS
These transactions revolve around the PLAYER and the game distributors — APP
MARKETS and GAME DEVELOPERS (summarily: GAME DISTRIBUTORS).
GAME DISTRIBUTORS sell their games to the PLAYERS using the BGX PLATFORM to
place the game and to process payment. They monetize their activity through in-app pur-
chase, freemium account, and paid app download mechanisms. From each
transaction, they get 90% of the revenue, while the BGX PLATFORM receives 10%
revenue. Moreover, GAME DISTRIBUTORS can organize tournaments and attract
players who will pay an entry fee. The GAME DISTRIBUTORS get to keep 90% of those
raised fees. This is in contrast to the current systems that take up to thirty percent of
the revenue.
BGX WHITE PAPER
46
PLAYERS can earn money for playing as well. The PLAYERS can sponsor
other players by donating BGT coins; they can become STREAMERS and earn from ad
views on their videos; and they can participate in tournaments where they earn prizes.
They can participate in airdrops and gain BGT Coins from completing challenges and
tasks set forth by GAME DISTRIBUTORS. In all cases, they keep 90% of what they earn
and 10% goes to the BGX PLATFORM for developing and processing the transaction.
Figure 20 >> >>
Ad Transactions
Ads can be purchased by internal parties and by parties external to the platform.
These economic flows are treated differently. In both cases, the PLAYERS earn from
viewing ads.
GAME DISTRIBUTORS can buy ads from AD PROVIDERS to promote their content to
PLAYERS and increase their user base, engagement, or other metrics. For every transac-
tion, the AD PROVIDERS keep 40% of the revenue, the PLAYERS earn an equal 40% of the
revenue, and the BGX PLATFORM takes a 20% commission for facilitating the transaction.
External parties can also advertise on our platforms. Assuming that these deals
are made outside of the platform, the first inflow appears when AD PROVIDERS pay the
BGX WHITE PAPER
47
platform to show external ads. Ad prices vary by type of ads, targeted number of
views and by how relevant they are for their viewers. In the case of external ads, 60% of
the payment by AD PROVIDERS is given to the players and the BGX PLATFORM keeps
40%.
Figure 21 >> >>
Platform Transactions
The BGX PLATFORM takes a 10% commission on all transactions except ads,
20% on internal ads and 40% on external ads. These earnings are split among NODES,
BGX TOKEN HOLDERS and BGX DEVELOPERS.
The BGX DEVELOPERS are the team that created the platform and maintain it
throughout the entire operation, adding and improving modules, scaling up the
platform. The BGX DEVELOPERS earn 40% of all revenue, giving 60% to other
participants: NODES and BGX TOKEN HOLDERS.
This means that BGX DEVELOPERS earn 4% from all non-ad transactions, 8% of
internal ad transactions, and 16% of external ad transactions.
BGX WHITE PAPER
48
The NODES have two primary functions: they validate and process off-chain
transactions and facilitate app delivery. NODES earn 40% of all revenue. That is equiva-
lent to 4% of all non-ad transactions, 8% of internal ad transactions, and 16% of external
ad transactions.
App Stores and Game Developers keep 90% of what they make on our
platform, a significantly higher percentage than with Google Play and App Store
offer. They monetize through traditional in-app purchases, freemium and paid
downloads. They can also monetize through additional features, such as
tournaments, and provide tokens as incentives for players.
Players get a chance to earn from their games. Not only can they earn BGT Tokens
on their streaming activity, but they can also participate in tournaments and incentives
by game distributors. Players keep 90% of what they earn. Unlike the current world,
the BGT Tokens are interchangeable between different games and do not become
useless once the player is done with a particular game. Players also earn from
viewing ads. They are awarded 40 – 60% of the cost per view, depending on
whether the ad is internal or external.
Ad providers have access to both internal and external customers. Ad
providers keep 100% of what they make externally but pay a fee for presenting
internal ads. For internal ads, ad providers keep 40%.
Nodes are the nervous system of the platform, facilitating financial
exchanges and content delivery from one participant to another. Nodes earn 40% of
all revenues generated by the platform.
BGX Token Holders are are members of a Loyalty Club with revenue sharing
privileges. In addition to the ability to sell their tokens at an open market and realize
capital gains, BGX Token Holders also share in the revenues of the platform: 60% of
all revenues go to BGX Token Holders split in tiers that are dependent on the number of
tokens held.
The BGX Platform keeps the remaining 40% of the revenues. These revenues come
from levying a 10% commission on all non-ad transactions, a 20% commission on inter-
nal ads and a 40% commission on external ads.
> > 5.4
OVERDRAFT
FEATURE
As one of the functions of a player’s wallet, overdraft can become a powerful
tool for eenhancing player loyalty to the games on BGX Platform.
During the implementation of overdraft mechanisms, BGX took into account the
BGX WHITE PAPER
49
various peculiarities regarding this scope of activities from the regional regulative per-
spective. For this reason, the overdraft functions on the BGX platform are similar
to purchase installment plans (hire purchases), and in addition, provide reliable
protection against withdrawal of loaned funds from the platform. This leaves viable
lending within the game mechanics and loyalty programs implemented by game
developers, while not diving into consumer credit processes.
The most important principles in the implementation of BGX overdrafts are these:
• Establishment of maximum similarity between BGX overdrafts and
installment mechanisms;
• Availability of reliable mechanisms for protecting against the withdrawal
and cashing out of overdraft credit funds;
• Determination of the overdraft limit for each player;
• Dynamic determination of a player’s individual overdraft capacity based
on his behavior using AI;
• Convenient overdraft parameter settings for game developers;
• Possibility of implementing both paid and free overdrafts for players at
the discretion of game developers.
As already mentioned above, the overdraft limit is determined by the BGX platform
individually for each player. The most important factor in determining the limit is its pur-
pose. When providing overdrafts, the BGX Platform takes into account the risk of losing
funds associated with the intention to withdraw and cash out loaned funds, protecting
against this kind of fraud.
It should be emphasized that the BGX Platform has two types of internal
currency: the BGX Tokens in the player’s virtual wallet and the in-game currency – BGT
Coins. Overdrafts are provided only in the BGT currency, and the BGT Coins collected
this way cannot be exchanged for BGX Tokens or another cryptocurrency and taken out
of the platform. This policy prevents fraudulent and illegal credit practices with the goal
of cashing out.
The following are Overdraft use cases:
1. Content that cannot be resold without selling one’s account on the BGX plat-
form:
• The sale of add-ons, editions, premium content. A strategy of some game
developers is to constantly feed the interests of players with various additions
to the game (missions, quests, etc.).
• Crowdfunding of in-app purchases. Players pool their funds, for example, to
improve the town of their clan: changing horse carriages to trains can
significantly increase the clan’s ability to trade. Assets cannot be traded
across games, so overdraft may be used.
BGX WHITE PAPER
50
• Subscription fee. Frequently, the player wants to continue being connected to
the game here, and now and paying an extra coin for the urgency would
not be a waste.
• Selling in-game items and equipment, customization, etc. The use of overdraft
is only possible in games where the sale of such assets back onto the
in-game market is impossible or where developers place a temporary
block on selling equipment for accounts with outstanding overdrafts.
• Gifts. The overdraft is limited for this article and is determined by the
possibility of monetizing the gift by selling it within the game and by the
loyalty of the player making the gift.
2. Paid activity within the game. The overdraft limit is dynamically determined by
the player’s loyalty:
• Bets
• Additional lives / moves
• Disabling ads
• Pre-ordering or crowdfunding new games
• Contests and tournaments
In addition to game-specific overdraft factors, the following platform-wide factors
may affect the limits provided:
• The amount of mobile games using the BGX platform. Paid and free games are
weighted differently;
• The overall time spent by the player in mobile apps using the BGX platform.
The analysis covers data within the last 24 hours, week, month or year;
• The amount of funds that the player has contributed into the BGX platform,
a tranche (portioned) structure across time;
• One of the most important criteria for determining the overdraft size is the
credit history of the player on the BGX platform. This credit history is limited
to the behavior on the platform.
Using the settings provided by the BGX platform, any given developer can
determine the basic limits and terms behind overdrafts to set a grace period and to
structure the installments (some installments are free, some are paid).
The platform allows developers to have their own overdraft accessibility strategies
with different risks, covering the costs of defaults using funds from their own commis-
sion.
BGX WHITE PAPER
51
> > 5.5
LOYALTY CLUB
REVENUE SHARING
BGX Tokens can be exchanged for BGT Coins and spent on the platform. . No
matter how long players hold their BGX Tokens, it is assumed that eventually either
they themselves or one of the next parties who bought the Token from them will
exchange it for a BGT Coin. That is why each BGX Token is considered to be just an
unspent Coin, and thus represents the belief in the platform’s future and eventual
participation. This is why all holders are entered into the Loyalty Club.
Within the Loyalty Club there is the revenue sharing program as a way to give
back to our token holders. A total of 60% of all transaction commissions are allocated
to these token holders, with the BGX Platform retaining the other 40%. Of these 60%,
40% are given to the operators of Nodes (40% of transaction commissions are equal to
4% of the total transaction value).
The remaining 20% are distributed once per year according to the following model:
• Bronze Level: 100 – 999 Tokens held; 3% of all commissions equally shared
between holders
• Silver Level: 1,000 – 9,999 Tokens held; 4% of all commissions equally shared
between holders
• Gold Level: 10,000 – 99,999 Tokens held; 6% of all commissions equally
shared be-tween holders
• Platinum Level: 100,000+ Tokens held; 7% of all commissions equally shared
between holders
The structure of the Loyalty Club encourages holding and purchasing BGX To-
kens, enabling Tokens to rise in value quickly due to supply scarcity. At the same
time, the Holders incentives and the rising prices do not interfere with regular platform
operations, since BGT Coins can be purchased by any cryptocurrency and their price is
fixed.
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6. PRODUCT ROADMAP
BGX development will occur according to the DSDM Atern Agile framework
and will be completed in iterations with a focus on business-goals. Within the
framework of the adopted methodology, all results are provided gradually,
according to a pre-set schedule:
pre-2017 Development of Xelopes Core and
processing platform
July,
2017
October,
2017
Product concept
Creation of the architecture
and prototype
April,
2018
Creation of the MVP
May,
2018
September,
2018
Token Generation Event
Single-Node Alpha version
User Wallet
December, Multi-node Alpha Version
2018
April, Beta version with AI module
2019
September, Including external nodes into
2019 file exchange
March,
2020
Automat ed token launch for
game applications
July, Unfolding of independent nodes
2020
Building distinct technological module
sand testing the mincommercial
projects
Forming an overall vision of the product,
marketing studies, team formation
Creating an abstract architecture and
making the main technological decisions,
building a model for neural network
learning
Forming the product prototype to
provide the user with the main
functions, developing specifications,
confirming the product’s features
BGX token crowdsale
Forming the first version of a processing
node with the possibilities of buying and
selling BGX tokens and developing the
main modules. Placing the user wallet
as an independent app on the main app
markets
Forming a multi-node system with the
ability to conduct decentralized
processing and facilitating data
exchange
Integration of external blockchain
solutions, inclusion of AI functions in
monitoring transactions, providing
functions for app dissemination
Forming automated data exchange with
external systems, signing up external
app markets
Expanding partnerships with
development organizations, forming a
full SDK, including the module for sub-
token emissions
Unfolding the number of nodes and
forming a stable BGX ecosystem
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> > 7.1
MISSION
7 TEAM
The BGX mission is to use the AI-powered processing platform amplified by
game capabilities to democratize the multi-billion mobile games industry.
We believe that in the era of decentralization, the application market can-
not remain under the control of only a few vendors. To create solutions,
the ecosystem must be united. For this purpose, the entire platform (with the
exception of the investment module BIFROST Funding Module) will be
available as an open source. Any developer can join the platform and develop it
as a part of the game community.
> > 7.2
TEAM OVERVIEW
We have assembled a powerful team of highly motivated professionals.
Our competences include deep technological knowledge, a good understand-
ing of business and finance, and significant opportunities for building scalable,
world-class solutions.
COSTA
ZAKHAROV
Co-founder,
Operational Director
We call Costa the heart of the
project. His incredible energy and con-
stant team encouragement leads his
team to creative energies that circulate
the blood in our BGX organism. With
Costa, you cannot relax or succumb to
gloom. He instinctively feels any rising
soft spots and directs himself towards full
support. Costa has enormous experience
in entrepreneurship, organi-zation
leadership, and implementation of
successful projects in not only soft-
ware development, but also in tens of
other industries. It seems that he
possesses the foresight to bring the
most daring ideas into reality.
IGOR
MISHENEV
Co-founder, Business
Development Director
If we continue the analogy be-
tween BGX and a living organism, Igor
functions as the lungs of the project. It
is his unending effort in finding like-
minded supporters and partners who
bring us the development and
confidence aligned with our business
goals. BGX is not Igor’s first project. He
is the co-founder of several large soft-
ware companies that both develop
projects for others and release their
own products, including mobile games.
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VALERY
KHVATOV
Co-founder,
Technology Director
Valery is the brain of BGX. In fact,
he is the brain that astonishes with
the depth and breadth of business and
development knowledge. It is not sur-
prising, Valery’s portfolio includes more
than 200 projects developed under his
direction. These are massive educa-
tional, financial, and social projects with
teams up to 100 people. Valery’s expe-
rience is unique — it is hard to find an
area in modern technologies that Valery
wouldn’t know in-depth and where he
hasn’t already developed a product.
ALLA
WIELICZKER
Product
Development
Alla is the company’s nervous
system. All the strings from smaller
sub-projects go through her; she man-
ages the development teams, manages
the schedules, distributes module devel-
opment, and performs quality manage-
ment. Alla’s multitasking and incredible
productivity solved what seemed to be
unsolvable tasks many times in the past.
THANH
NGUYEN
Mobile
Development Leader
.
Thanh is a leader of the Vietnam-
ese development company Titan Tech-
nology. With 150+ people on his team,
he can manage any mobile based proj-
ect. Happy to have such a skilled team
join our BGX project.
PHONG
NGUYEN
Delivery
Director
Phong is an outstanding manager
and delivery director. He is absolutely
dedicated to getting the best result at
the right time. With 20 years of experi-
ence, Phong’s contribution to the
project cannot be overestimated.
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ALEX
KHVATOV
Crypto-Finance
Officer
.
Alexander is a Toronto-based
crypto-finance specialist and an avid
ICO investor. With a distinguished track
record in finance, Alexander worked to
develop financial instruments for sever-
al Fortune 500 companies and govern-
ments, prior to specializing in ICOs in
their early days.
TOAN
TRIEU
Product
Manager
Toan possesses over thirteen
years of mobile device management
and enterprise mobility management.
He co-founded several reputable
software development companies. Toan
is a highly educated motivat-ed person.
NICK
ZAKHAROV
Brand
Manager
.
Nick began his path in profession-
al sports, earning many wins on the mat
in judo. His experience of frequent vic-
tories and rare losses gave birth to con-
fidence and determination. These qual-
ities distinguish Nick. He chose brand
management as his calling and already
brought the LFitExpress brand to the big
world. We believe that the BGX brand will
shine in new colors in his strong hands.
DIMITRY
YAKIMCHUK
Web-development
Leader
Dimitry is energetic and the brav-
est member of the BGX team. The mo-
ment Dimitry graduated university with
a masters degree, he founded his own
web and mobile development
compa-ny Software Canter. He is not
afraid to tackle new projects; he seeks
challenges and successfully overcomes
them. We are happy that Dimitry and his
team became a part of our BGX collective.
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8 LEAD ADVISORS
ROBERTO MEDRANO
ICO Advisor. CEO Beach View, FormerGM HP Software, CEO
Polivec, President Finjan, Advisor, EVP Akana,
Board Member, Sun Microsyste
Roberto is an executive in the information technology fields of cybersecurity, AI, Blockchain, IoT,
middleware, governance, API security, microservices, DevOps, software, SaaS, cloud, SOA/API
management & enterprise architecture. He has experience with major Fortune 100 companies on
transformation initiatives for the Digital Business using cloud, mobile or web technologies with SaaS, on-
premises or cloud hybrid products.
FOREST BARBIERI
Business Advisor. International Investor and entrepreneur
Forest has a long history of industry success beginning with Educa-tional Resources. He grew ER into
the largest supplier of educa-tional technology within the education market. He merged the company with
Davidson & Associates, a leading software publish-er, and helped lead the combined company to a
successful IPO. During his tenure, they purchased several development companies including Blizzard
Entertainment. The combined company was sold in 1996 for 1.3 Billion dollars to CUC. Following that,
Forest has been active in creating multiple companies and strategic partner-ships both within the USA and
overseas ranging from boutique technology development to travel, real estate and leisure.
ALEXANDER BOGDANOV
Scientific Advisor. D.Sc., Professor of Department of Computer
Modelling and Multiprocessor Systems
Professor Alexander Bogdanov has over 40 years of lecturing experience at the esteemed Mathemat-
ical-mechanical faculty of St-Petersburg State Technical University, Polytechnical University, Institute for
Precise Mechanics and Optics. At present, he is a visiting Professor at the University of Amsterdam and a
Professor at Electrotechnical University. Over 200 of his scientific works were published.
BGX WHITE PAPER
57
BEN WOODS
Cybersecurity & Data Protection Advisor, CISSP, CCSP, GDPR-P,
Microsoft Security Professional, Cisco Security Professional, and
five year President of the international ‘Crypto Community’
Ben is a specialist Cyber Security & Data Protection Consultant with over five years’ specific experience
in crypto currencies and Blockchain-related technologies. His clients included SWIFT (Society for World-
wide Interbank Financial Telecommunication), NYSE-Euronext, The European Bioinformatics Institute at
the European Molecular Laboratory, and NTT Communications. Currently he is Strategic Cybersecurity &
Data Protection Advisor to the Cloud Constellation Corporation’s multi-satellite SpaceBelt™ program.
ROMAN TROUCHINE
Fintech Advisor. Microtransactions and Overdraft development
Roman has impressive experience in the fintech industry and is one of the world-renowned experts on
microcredits. More than 18 years of direct working experience with finan-cial applications in the leading
financial organizations has allowed Roman to develop his own independent and deep expertise on the
methods and models applied in each situation. Roman participated in the development of complicated
scoring model projects with the use of artificial intelligence and brings his expertise and dynamic
background to the BGX team.
DANIEL SHAPIRO
AI Advisor. Co-Founder & CTO at Lemay Solutions Consulting Inc.
Daniel is a driven CTO with a broad background in high tech research, development,
commercialization, and value creation. Daniel has established proficiency in building startups with
software and hardware products, people man-agement, project planning, and government grants. With 27
publications, 16 awards, and four certifications, Daniel’s knowledge in technology is extensive.
BGX WHITE PAPER
58
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